Hello all,

I am a homeowner looking to supplement my income by purchasing a second home, preferably a duplex, and renting it out. The only problem is I only have $15K saved. I am looking to purchase properties in the 50 to $60K range. So I have the down payment saved but nothing for closing costs or a contingency/reserve. I feel I would need closer to $30K saved to be able to start looking at buying. I can only save about $10K a year at my present job, and there's little I can do to supplement my income short of taking on a second menial job. I don't want to have to wait another two years to buy a rental. Are any of the following viable options ? :

1) Take out a personal loan to serve as a contingency, and if I'm denied a mortagage due to debt/income ratio, pay the loan off immediately.

2) Take out a 7 year personal loan for $25K, combine with my savings, and purchase a $40K property in a bad neighborhood that needs work.

3) Save for another 6 months, neogiate the seller pay closing costs, and hope $20K in savings leaves enough contingency to satisfy a lender.

4) Find a lender that only cares about income and down payment, and not any contingency/reserve??? Is this possible?

I know it sounds like I'm cutting it too close and going broke by buying a property, but I have a stable enough job, and extensive lines of credit to use for major emergencies, if it came to that.

Many thanks. 

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